Thomas Peeters

Monopolization of broadcast rights for collective sales is a widespread practice in sports leagues. Proponents of this system claim that it is a necessary tool for the maintenance of competitive balance (tension) in sports. In this empirical paper, I argue that, in European soccer, collective sales do not increase competitive balance as compared to individual sales. Further, I demonstrate the negative effect of the UEFA Champions League and the beneficial effect of a more equal distribution of drawing power and a larger domestic market size on competitive balance. These results shed new...Read more

Stefan Kesenne

In this theoretical analysis, we try to find out what the impact is of pooling and sharing, and not just the sharing of broadcast rights, on the competitive balance in a sports league. We are using a simplified 2-club non-cooperative Nash equilibrium model with the hiring of talent as the only decision variable. The conclusion is that the individual sale of broadcast rights, combined with a pure performance-related sharing arrangement of the money, offers the best guarantee for an improvement of the competitive balance.Read more